Adobe Inc. (ADBE): Billionaire Ray Dalio Is Buying This Software Stock

Adobe Inc. (NASDAQ:ADBE) is one of the 15 Best Stocks to Buy According to Billionaire Ray Dalio.

Adobe Inc. (NASDAQ:ADBE) has been a constant feature in the 13F portfolio of Bridgewater Associates since the fourth quarter of 2010. Back then, the fund owned more than 477,000 shares in the software giant. This holding was sold off by late 2011, and a new position was opened in 2014. This was also sold off and the fund did not own a sizable chunk of the firm until early 2024. In the first quarter of 2024, it increased an existing stake by over 2,000%. For the past five quarters, it has added to the existing position with much gusto. In the third quarter of 2025, the fund owned 1.26 million shares of the company, representing an increase of 73% compared to the filings for the previous quarter. In the fourth quarter of 2025, this grew to more than 1.28 million shares.

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Adobe Inc. (NASDAQ:ADBE) has emerged as a hedge fund favorite in the AI era because these elite funds believe that the company has the ability to monetize AI through an established enterprise ecosystem. For example, one indicator of this is the AI-first annual recurring revenue, which more than tripled for Adobe in the first quarter of 2026. In addition, the business model of the company, where it charges for generative credits within Photoshop and Illustrator, has turned AI from a cost into a high-margin revenue stream. Monthly active users for AI-powered tools like Firefly and Express reached a record 850 million in early 2026.

While we acknowledge the risk and potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADBE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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